When you are applying for New Zealand Superannuation you must choose a tax code. Superannuation tax codes depend on whether you are receiving other income.
If NZ Super Is Your Only Income
If NZ Super is your only income then your tax code should be M. The exception to this is if you have a student loan, in which case your correct tax code should be M SL.
If You Are Still Working
If you are still working and therefore receiving income from another source, your tax code will be different depending on whether your NZ Super is your primary or secondary source of income.
If your NZ Super is greater than the amount you earn from your wages/salary, then it is classed as being your primary/main source of income. In this case your correct tax code should be M. Again, if you have a student loan then it should be M SL.
If NZ Super is less than the amount you earn from your wages/salary, then it is classed as being your secondary source of income. In this case, your correct tax code will depend upon the total combined amount of annual income you will earn from NZ Super and your job.
If your annual total income including NZ Super is:
- Less than or equal to $48,000, your secondary tax code should be S. Your NZ Super will be taxed at the rate of 17.5%.
- Between $48,001 and $70,000, your secondary tax code should be SH. Your NZ Super will be taxed at the rate of 30%.
- Greater than $70,000, your secondary tax code should be ST. Your NZ Super will be taxed at the rate of 33%.
There is also the option to apply for a special tax code if you believe your tax rate is too high or too low.
If you receive income from savings or investments this income also needs to be taxed at the correct rate.
Please contact us if you have questions regarding NZ Superannuation tax codes, or visit the government’s website.